LIC Bima Shree Plan Review, Benefits, Eligibility and more: Life Insurance Corporation of India (LIC) keeps on offering different insurance policies for its customers from time to time. And it is the largest and oldest insurance company in India. It offers insurance policies for poor and rich people of every section of the country. Similarly, LIC has introduced LIC Bima Shree plan for high-net-worth individuals, in which the insured gets a combination of protection and savings. Let us understand in detail about this LIC Bima Shree Plan.
LIC Bima Shree Plan Review
LIC Bima Shree Plan offers a combination of protection and savings. This policy is specially designed for high net worth individuals. Provides financial protection to the beneficiary of the insured in case of death of the insured during the policy term.
LIC Bima Shree Plan is a money back insurance policy. This plan combines your policy term of 14, 16, 18 and 20 years and the premium paying term is 4 years less than the policy term. Being a money-back plan, LIC Bima Shree plan guarantees lump sum payouts to the policyholder at specific intervals and on maturity of the policy.
LIC Bima Shree Plan Eligibility Criteria
| Name of Insurance: | LIC Bima Shree Plan |
| Entry Age (Minimum): | 8 years |
| Entry Age (Maximum): | 55 years for 14 year policy term 51 year for 16 year policy term 48 year for 18 year policy term 45 year for 20 year policy term |
| Coverage (Basic Sum Assured): | Minimum:- Rs.10,00,000 Maximum:- No limit (Subject to Board approval) |
| Premium Paying Term:- | (Policy term – 4) years |
| Policy Term:- | 14,16,18 and 20 years |
| Maturity Age (Maximum): | 69 years for a policy term of 14 years 67 years for a policy term of 16 years 66 years for a policy term of 18 years 65 years for a policy term of 20 years |
| Official website:- | www.licindia.in |
LIC Bima Shree Plan Features
Some of the key features of LIC Bima Shree plan are as follows:-
- This policy is designed for high net worth individuals.
- LIC Bima Shree Plan is a money-back insurance plan focused on savings and insurance coverage.
- It is a limited premium payment plan, which offers survival benefit for a specified period.
- This plan is designed to provide financial support to the family in the event of unfortunate death of the insured.
- This plan provides loan facility against the policy.
- This plan offers the flexibility to choose the policy term as per the convenience of the insured.
LIC Bima Shree Plan Benefits
Death Benefit
In this plan, if the insured dies during the policy term, then the benefit amount is paid as death benefit to the beneficiary of the insured. Which would be like this:
- If the life assured dies within the first five years of the policy term, the Sum Assured plus Guaranteed Additions is paid.
- If the life assured dies after completion of five years of the policy term, the Sum Assured plus accrued Guaranteed Additions and Loyalty Additions are paid.
- Where Sum Assured is 7 times of Annualized Premium and 125% of Basic Sum Assured.
Maturity Benefit
On survival to the completion of the policy term, the life assured receives Basic Sum Assured, Accrued Guaranteed and Loyalty Additions (if any) as Sum Assured on Maturity. Where as Sum Assured on Maturity will be as follows:
- 40% of the Basic Sum Assured is given for a policy term of 14 years.
- 30% of the Basic Sum Assured is given for a policy term of 16 years.
- 20% of the Basic Sum Assured is given for a policy term of 18 years.
- 10% of the Basic Sum Assured is given for a policy term of 20 years.
Survival Benefit (Guaranteed Additions Benefits)
In this plan, survival benefit is provided to the insured at regular intervals. This survival benefit is paid to the insured at each stage of survival during the term of the policy. The Basic Sum Assured chosen under the Survival Benefit policy is a fixed percentage of the Basic Sum Assured. The survival benefit under this plan will be as follows:
| policy term | pay year | payment amount |
|---|---|---|
| 14 years old | in 10th and 12th year | 30% of Basic Sum Assured |
| 16 years | in 12th and 14th year | 35% of Basic Sum Assured |
| 18 years | in the 14th and 16th years | 40% of Basic Sum Assured |
| 20 years | in the 16th and 18th years | 45% of Basic Sum Assured |
Tex Benefits
1,50,000 for life insurance premium paid. Under the current income tax rules, deduction is allowed from taxable income every year as per section 80C. Maturity benefit is also tax free subject to fulfillment of all terms and conditions u/s 10(10)D. These tax exemptions can be revised from time to time.
Riders of LIC Bima Shree Plan (Additional Rider Benefits)
Riders available under LIC Bima Shree plan:-
- LIC Accidental and Disability Benefit Rider
- LIC Accident Benefit Rider
- LIC New Term Assurance Rider
- LIC New Critical Illness Benefit Rider
- LIC Premium Waiver Benefit Rider
Grace Period
A grace period of 30 days is available for quarterly, half-yearly, and annual premium payments. Same if you pay monthly premium then you get 15 days discount. If the premium is not paid before the end date of the grace period, the policy will lapse.
Surrender Benefit
In this insurance plan, an option to surrender the policy is provided at any time after the policy has been continued for two consecutive years. In such situations, the insurer pays the higher of the Special Surrender Value or a surrender value equal to the Guaranteed Surrender Value.
Revival
If the premium is not paid within the grace period, the policy lapses. LIC Insurance provides an option to revive the Shree plan but within 5 consecutive years. It means from the date of your first unpaid premium and it can be revived only before the maturity date.
Free look period
This plan gives a period of 15 days to the insured to think whether they want to continue with the plan or not. It gives you the option to cancel the policy within this period if the policyholder has not made any claim. That is, in this policy you get a free look period of 15 days.
The Bottom Line:
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